Europe

Friday

James Forsyth

A defining moment

David Cameron’s use of the veto in the early hours of this morning changes the British political landscape. The first thing to stress is that if the euro collapses it will not be because of the British veto. The deal agreed between the 17 eurozone countries and six of those nations who still want to join it does not address the single currency’s fundamental problems.   What is, perhaps, most intriguing about what happened in the early hours of this morning is that Sarkozy and Merkel chose to put Cameron in this position. In truth, Cameron was not asking for that much. But Sarkozy and Merkel were not prepared to take even small steps to accommodate his concerns. They had clearly decided that they were happy to do a deal at the level of 17-plus rather than 27.

Fraser Nelson

Cameron says ‘No’

It looks like Britain could be heading for renegotiation with the EU sooner rather than later. The UK, Hungary, Czechs and Swedes last night stayed out of a 27-member EU Treaty. ‘I don’t want to put it in front of my parliament,’ said Cameron. But in an historic move, the deal is going ahead anyway, with 23 members: the Eurozone, plus the six states who want to join. ‘We will achieve the new fiscal union,’ said Angela Merkel. Nicholas Sarkozy is upbeat saying it has been an ‘historic summit’ which will change the EU ‘radically’.  If so, then Owen Paterson is right in his interview with James Forsyth in the new Spectator: Britain will have to reassess its relationship with this ‘radically’ different EU.

Thursday

Jonathan Isaby

Forget the Brussels Summit — here’s how Cameron could challenge EU power at home

Much has already been written this week about the negotiating hand that David Cameron should be playing in Brussels over the next couple of days.   I am fervently of the view that there is indeed a whole raft of policy areas over which he should be seeking to reclaim powers from Brussels, and they are detailed in a new paper by Dr Lee Rotherham, Terms of Endearment, which was published earlier this week by the TaxPayers’ Alliance.   But forget the European Council for a moment. For it is worth highlighting the things that the British Government could do immediately and unilaterally, here at home, to challenge EU power — and without recourse to Brussels whatsoever. And Lee’s paper gives the following six examples:   1.

James Forsyth

Cameron plans Friday night reception for select Tory MPs

In a sign that David Cameron does not expect the European Council to go late into Friday night, he has asked a group of Tory MPs to supper at Chequers on Friday evening. It is hard to imagine that a full deal between both the 17 and the 27 could be thrashed out in time for Cameron to return to England for supper. Tellingly, the invitations to this event went out just last week.   This supper is part of a continuing attempt by Cameron to reach out to the parliamentary party. Interestingly, the guest list is not comprised solely of loyalists. Andrew Rosindell, who was part of the 81 strong rebellion on the EU referendum motion, is one of those who have been invited.

James Forsyth

Extended version: Our interview with Owen Paterson

As promised by Fraser earlier, here is an extended version of James's interview with Owen Paterson that we posted yesterday: It is becoming increasingly clear what the Conservative party expects of its Prime Minister. If he is going to agree to 17 eurozone countries pushing ahead with the Franco-German plan for fiscal union, he needs to secure a new deal for Britain in exchange. Just what this new deal should look like is a matter of intense debate in Conservative circles. If France and Germany turn the eurozone into a ‘fiscal union’, what does that mean for Britain’s standing in the European Union? At the weekend, Iain Duncan Smith suggested that the nature of the EU would change so much that a referendum would be necessary. No.

Daniel Korski

Cameron’s Europlan comes together

The Tory party may not like it, but David Cameron is now finally following a sensible EU policy. As today's summit in Brussels starts, the Prime Minister appears to have decided what really matters to the UK, and realised that he needs to play nice with the Germans and French. At the top of the PM's priority list — a priority voiced by Michael Howard on the Today Programme earlier — is avoiding the collapse of the euro. The consequences of a collapse on Britain's economy are incalculable, but everyone knows they would be profound. Second comes the protection of the City. A Euroland tax on financial transactions would damage the City and thus Britain (as well as the EU) — avoiding it is key.

Fraser Nelson

Paterson pasted across the front pages

James Forsyth's interview with Owen Paterson is on virtually every front page this morning, and deservedly. Boris, bless him, can make calculated explosions at times when it suits him. But Paterson is not one for pyrotechnics or mischief. His thoughtful interview with James shows how believes that the eurozone is about to become ‘another country’ — he used the phrase several times — and one that can dictate regulations on the rest of Europe due to Qualified Majority Voting. James is posting a longer version of this interview later today, and I'd urge CoffeeHousers to read it. His Euroscepticism is rooted in his business background and the urgency he feels for economic reform.

James Forsyth

Europe is the story again

Today was one of those days when we saw just how divisive the European issue can be to the Conservative party. The sight of Malcolm Rifkind and Nadine Dorries treating each other with barely disguised contempt on Newsnight was a sign of just how poisonous relations in the parliamentary party could become. Intriguingly, the Daily Mail reports in its first edition that ‘Even some of Mr Cameron’s closest Cabinet allies are understood to be shifting to a much more Eurosceptic position, with a five-strong group of ministers planning to visit the Prime Minister as early as today to urge him to toughen his stance.

Wednesday

Lloyd Evans

Ed the arch-bungler lets Cameron off the ropes

Ed Miliband had an open goal today. And he whacked it straight over the bar. Cameron was in trouble from the start. Having placated the rebel wing of his party with vague talk about ‘repatriating powers’ he is now expected to deliver. But he can’t make specific demands without weakening his hand at the negotiations so he has to talk in generalities. The Labour leader spotted this weakness and tried to exploit it with one of his lethally brief questions. ‘What powers would the Prime Minister repatriate?’ Cameron gave several answers without addressing the issue. His aim in the negotiations, he said, was to resolve the eurozone crisis, ‘and that means countries coming together and doing more things together.

Alex Massie

Difficult Choices Are Never Easy

So spake the Taioseach, a Mr Enda Kenny of County Mayo, on Sunday night. Difficult choices are never easy. There is something near-fabulous about the phrase. It has certainly prokoked Fintan O'Toole most severely. He's in rasping form this week Savour the phrase. Hold it to the light. Swirl it round the glass. Stick your nose in deep and inhale the rich aromas of full-bodied absurdity. Get the pungent whiff of carmelised cliche and curdled smugness. Imagine the work that went into crafting it, the bleary-eyed, caffeine-soaked speechwriters in their lonely eyrie, in the early hours of Sunday morning, running through the variations: hard choices are seldom soft; nasty things are never pleasant; difficult options tend to be difficult.

James Forsyth

Owen Paterson: A referendum on the EU is inevitable

It is becoming increasingly clear what the Conservative party expects of its Prime Minister. If he is going to agree to 17 eurozone countries pushing ahead with the Franco-German plan for fiscal union, he needs to secure a new deal for Britain in exchange.   Just what this new deal should look like is a matter of intense debate in Conservative circles. If France and Germany turn the eurozone into a ‘fiscal union’, what does that mean for Britain’s standing in the European Union? At the weekend, Iain Duncan Smith suggested that the nature of the EU would change so much that a referendum would be necessary. No. 10 quickly ruled that out. Cameron confided to Cabinet colleagues on Monday that he feared another referendum would bring down the coalition.

David Blackburn

Cameron attacked from all sides on Europe

David Cameron’s usual insouciance gave way to something approaching shouty panic as Europe dominated exchanges at PMQs. 8 Conservative MPs, all of them hostile to varying degrees, asked questions about Cameron’s intentions at the Brussels summit on Friday. This may not have surprised him, but the word around the Commons tearooms is that Cameroons are blaming Speaker Bercow for calling so many antagonistic MPs to their feet. It looked like a co-ordinated attack; and it's no surprise that an opportunistic Boris has since taken to the airwaves renewing his call for a referendum. Cameron’s article in this morning’s Times may have been intended to quell disaffection by looking decisive, but it seems to have had the opposite effect.

David Blackburn

Cameron’s plan

Much ado about a Cabinet split over Europe this morning. The Financial Times has interviewed Ken Clarke, whose europhile instincts are well known — something he shares with the senior Lib Dems. Clarke tells his eurosceptic colleagues not to expect powers to be repatriated from the EU at Friday’s summit. Meanwhile, David Cameron has written a piece in today’s Times (£), reiterating that he will veto any treaty that damages British interests. He also says that his ‘requests will be practical and focussed’. And therein, apparently, lays the split. The word ‘requests’ might open the possibility of repatriation.

Tuesday

David Blackburn

Cameron ramps up his rhetoric

The Conservative backbench disquiet on Europe has been building over the last few days, forcing David Cameron to quell the disaffection. He said earlier this evening: ‘When I go to Brussels I will be there to defend and promote British Interests, and the most important British interest right now is to sort out the problem in the Eurozone that is having the chilling effect on our economy that I have spoken about. That obviously means Eurozone countries doing more together and if they choose to use the European Treaty to do that than obviously there will be British safeguards and British interests and I will be there to protect that.

James Forsyth

Fiscal union would hit eurozone credit ratings

There is predictable euro-rage today at Standard and Poor's warning that there's a 50/50 chance that the six AAA eurozone countries could see their credit rating downgraded. But if the eurozone does push ahead with fiscal integration, it will — obviously — have an impact on the credit worthiness of the stronger eurozone economies. One of the reasons that the German bund auction went so badly on November 23 was because of concerns that Germany would end up having to backstop the debts of other European countries. Fiscal union would require Germany to do just that for now and evermore. No 'good solutions' to the eurozone crisis exist. We are in the land of least worst options.

David Blackburn

Mutiny in the air

David Cameron’s European problems seem to be mounting. The usual suspects — Carswell, Redwood, Jenkin et al — have been only too happy to take the airwaves and talk of this ‘great opportunity’ to repatriate powers. Those sentiments are growing across the backbenches. The Guardian quotes an ally of Iain Duncan Smith saying that he and his friends ‘do not accept the prime minister's argument that the changes will only affect the eurozone. Of course the changes will have an impact on Britain.’ The mounting disquiet appears to have been created, to an extent, by the PM hedging his bets and lowering expectations.

Monday

Alex Massie

Yes, Virginia, History Matters: Eurozone Edition

Broadly speaking, there are two ways of viewing the eurozone crisis: it's a problem of economics or a problem of politics. Neither explanation quite suffices, of course, since it is both but the emphasis you place on economics vs politics plays a part in how you'll view the situation and how likely you are to think there's any kind of solution that can satisfy the politics and the economics of the situation. Which is by way of suggesting that plenty of American commentators seem to think the problem is easy to solve and the main thing lacking in europe is the political will to do something about it. (Exhibit A: James Surowiecki of the New Yorker).

David Blackburn

The referendum question Pt. 2

Earlier this morning, Number 10 briefed that fiscal union in the eurozone would not trigger a referendum in this country because sovereignty will not be transfered from London to Brussels — a pre-requisite for any vote. The problem for Cameron is that some of his backbenchers say there should be a referendum. Bernard Jenkin was on the Daily Politics earlier, insisting that fiscal integration marks a new era in the history of the Eurozone, which he dubbed ‘Maastricht Plus’. On the other hand, some eurosceptic backbenchers caution that now is not the time to hold a referendum — stability in the eurozone is the order of the day.

Alex Massie

Club Rules, Brussels Edition

Ben Brogan's latest post offers a revealing glimpse into the oddness of the eurosceptic mind. He begins: To the dismay of many of his colleagues preoccupied by the euro crisis, the Prime Minister has been adept at nurturing strong personal relationships with Angela Merkel and Nicolas Sarkozy. Instead of confrontation he has engaged constructively with them, to the extent that they listen to him and are willing to consider his attempts to press the British interest. The German chancellor was delighted to discover that Mr Cameron was not the swivel-eyed euro loon she had feared, but a charming and reasonable young man. The French president meanwhile bonded with mon ami Dave over Libya and – pace the odd shouty moment – likes doing business with him.

Sunday

David Blackburn

The referendum question

As French and German officials make final preparations ahead of tomorrow’s meeting on fiscal union, it’s worth reconsidering the coalition’s triple referendum lock. James Kirkup has an incisive post on the issue, describing a potential government split. The division was evident on TV this morning: Iain Duncan Smith told Dermot Murnaghan that a referendum would be held ‘if there is a major treaty change’, while Nick Clegg told Andrew Marr that only ‘an additional surrender of sovereignty from us to Brussels’ can spark a vote. Kirkup argues that IDS reflects the broader sceptic position on the Tory backbenches: that the PM has promised a vote on all substantial treaty changes.